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Softmax Co., Ltd. (Japan)
(3671)
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Rating:61Neutral
Price Target:
¥337.00
▲(0.90% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily held back by weakening financial performance in the latest year (sharp revenue decline, margin pressure, higher leverage, and softer operating cash flow). Technical indicators are mixed/neutral and do not signal strong momentum. Valuation is comparatively supportive with a reasonable P/E and ~3% dividend yield, but not enough to offset the recent fundamental deterioration.
Positive Factors
Healthcare-focused recurring revenue model
Specialization in hospital and clinical IT creates durable demand and high customer retention: implementation projects plus ongoing maintenance/support generate recurring service revenue and switching frictions. This business model supports steadier cash flows and long-term client relationships versus one-off software sales.
Negative Factors
Sharp 2025 revenue decline
A 22% revenue drop in the latest year is a meaningful structural setback that can erode scale advantages, reduce recurring maintenance base, and limit reinvestment. If sustained, lower revenue makes fixed-cost absorption harder and raises execution risk for restoring growth in a competitive healthcare IT market.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthcare-focused recurring revenue model
Specialization in hospital and clinical IT creates durable demand and high customer retention: implementation projects plus ongoing maintenance/support generate recurring service revenue and switching frictions. This business model supports steadier cash flows and long-term client relationships versus one-off software sales.
Read all positive factors
Softmax Co., Ltd. (Japan) (3671) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥7.43B
Dividend Yield3.22%
Average Volume (3M)140.46K
Price to Earnings (P/E)14.4
Beta (1Y)0.50
Revenue Growth0.37%
EPS Growth-20.03%
CountryJP
Employees230
SectorGeneral
Sector StrengthN/A
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)21.54
Shares Outstanding24,050,800
10 Day Avg. Volume144,320
30 Day Avg. Volume140,460
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)2.04
Price to Sales (P/S)1.16
P/FCF Ratio20.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Softmax Co., Ltd. (Japan) Business Overview & Revenue Model
Company Description
Softmax Co., Ltd handles the complete spectrum of corporate system services, encompassing their development, commercialization, deployment, and ongoing support. A significant portion of their work is dedicated to creating advanced medical informat...
How the Company Makes Money
Softmax makes money mainly by selling and supporting healthcare IT systems for medical institutions. Its revenue is typically generated through (1) software/system sales and implementation fees for deploying its healthcare solutions (including con...
Softmax Co., Ltd. (Japan) Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.97B | 6.93B | 5.43B | 5.26B | 5.05B | 4.49B |
| Gross Profit | 1.86B | 1.86B | 1.66B | 1.55B | 1.43B | 1.44B |
| EBITDA | 706.65M | 784.12M | 702.47M | 621.88M | 571.83M | 612.45M |
| Net Income | 517.88M | 573.46M | 480.15M | 452.77M | 419.39M | 422.55M |
Balance Sheet | ||||||
| Total Assets | 8.53B | 9.13B | 7.54B | 6.72B | 6.55B | 5.76B |
| Cash, Cash Equivalents and Short-Term Investments | 2.77B | 3.12B | 3.45B | 2.92B | 2.85B | 2.76B |
| Total Debt | 2.44B | 2.48B | 1.41B | 1.33B | 1.35B | 1.38B |
| Total Liabilities | 4.59B | 5.20B | 4.02B | 3.50B | 3.61B | 3.14B |
| Stockholders Equity | 3.93B | 3.93B | 3.52B | 3.22B | 2.94B | 2.62B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 384.89M | 625.84M | 215.28M | 163.96M | 266.65M |
| Operating Cash Flow | 0.00 | 388.95M | 663.98M | 232.54M | 179.73M | 284.30M |
| Investing Cash Flow | 0.00 | -1.17B | -92.76M | -11.61M | -4.75M | -1.01M |
| Financing Cash Flow | 0.00 | 883.56M | -100.22M | -200.04M | -144.93M | -401.85M |
Softmax Co., Ltd. (Japan) Technical Analysis
Negative
334.00
Price Trends
309.82
Negative
316.62
Negative
327.32
Negative
Market Momentum
-2.32
Positive
47.87
Neutral
66.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3671, the sentiment is Negative. The current price of 334 is above the 20-day moving average (MA) of 313.40, above the 50-day MA of 309.82, and above the 200-day MA of 327.32, indicating a bearish trend. The MACD of -2.32 indicates Positive momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3671.
Softmax Co., Ltd. (Japan) Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | ¥225.79B | 32.38 | ― | 0.43% | 18.89% | 11.66% | |
61 Neutral | ¥7.43B | 14.44 | ― | 8.09% | 0.37% | -20.03% | |
61 Neutral | ¥11.26B | 18.13 | ― | 5.30% | 36.94% | -31.50% | |
59 Neutral | ¥88.52B | 44.69 | 6.35% | ― | 24.03% | 34.50% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | ¥2.15B | -4.11 | ― | ― | 14.84% | 30.67% |
* General Sector Average
JP:3671
Softmax Co., Ltd. (Japan)
311.00
-25.47
-7.57%
JP:4480
Medley
2,687.00
203.00
8.17%
JP:4438
Welby Inc.
257.00
-81.00
-23.96%
JP:4483
JMDC Inc.
3,430.00
-727.77
-17.50%
JP:9341
GENOVA Inc.
633.00
8.74
1.40%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.